Web Extra: Milk Prices Climb

Web Extra: Milk Prices Climb

You might want to take a closer look at your grocery bill. If you haven't noticed already, milk prices are way up from where they were a year ago.
CNN -- The price of milk is a lot higher than where it was last spring. According to the bureau of labor statistics: a gallon of whole milk cost $3.69 in April.

That’s up 7.5% from where it was at the same time a year ago... and is the highest price shoppers have seen since way back in September of 2011.

Unfortunately, analysts expect prices to continue to rise, at least for now.
You can pin a lot of it in China.

Milk demand there, along with other Southeast Asian and Latin American countries, has been skyrocketing.

Analysts say consumers there are upgrading their palates to more expensive meat and milk products.

And as the imports into those places increase, it naturally decreases the supply leftover for the U.S.

Farmers here aren't getting as big a cut as you might think, though.
Currently: only a third of retail prices are what's called the "farm share."
In the 80's, they used to get half. Farmers aren't losing out completely though.

The USDA says dairy farming is one of the few bright spots in commercial agriculture this year.
So although you're paying more at the checkout, the economy overall benefits.
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